Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.

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Thursday, November 25, 2010

Klaus Regling, chief of the European Financial Stability Facility (EFSF), said there is "zero danger of the euro zone breaking up", but added that the situation in the euro area was indeed serious.

""It is inconceivable that the euro fails".

"No country will give up the euro of its own will: for weaker countries that would be economic suicide, likewise for the stronger countries. And politically Europe would only have half the value without the euro."

"Of course the situation is serious," but he said there was no way France and Italy were in danger.

"Italy has come through the crisis well and has its state deficit in hand. And France has the same credit standing as Germany,".

Of course they would never say the opposite: "The Currency will fail", just like Ireland said that they would nor need a baliout, same thing Spain is saying now.

There were reports earlier this week that Ewald Nowotny, European Central Bank policymaker, was quite irritated at Ms Merkel for not "differentiating between the euro as a currency and the problems of individual (euro zone) states", when Ms. Merkel voiced her concerns and said the situation was serious.